Provides scale to accelerate growth and improve profitability in
EMEA;
Expands Tennant Company’s product portfolio and
market coverage
MINNEAPOLIS--(BUSINESS WIRE)--
Tennant Company (NYSE: TNC), a world leader in designing, manufacturing
and marketing of solutions that help create a cleaner, safer, healthier
world, today announced that it has completed the acquisition of IP
Cleaning S.p.A. and its subsidiaries (IPC Group) from private equity
fund Ambienta for $353 million (€330 million). The privately held IPC
Group, based in Italy, designs and manufactures innovative professional
cleaning equipment, tools and other solutions.
Commented Chris Killingstad, Tennant Company's president and chief
executive officer: “Our acquisition of IPC Group aligns with our
aspirations to grow Tennant’s revenue and profitability. The addition of
IPC will more than double Tennant’s current EMEA business, providing the
scale needed to accelerate our growth and better leverage our EMEA cost
structure. Our businesses are highly complementary and differentiated in
our geographies, products and go-to-market approach. We are excited
about our combined potential to significantly increase our market share
in Europe.”
IPC Group produces small- to mid-sized commercial cleaning machines and
equipment, including floor sweepers and scrubbers, vacuum cleaners,
high-pressure washers, and related aftermarket parts and services. IPC
Group also expands Tennant Company’s product portfolio to cleaning tools
and supplies, such as multi-purpose cleaning trolleys, window-washing
systems, antibacterial microfiber mops and cloths, and a wide array of
consumables. Like Tennant, IPC Group is committed to product innovation
and sustainability, with a focus on reducing energy, water and detergent
use.
IPC Group sells its products under the brand names IPC, IPC Foma, IPC
Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco, Ready
System, Euromop, and Pulex. Both companies’ brands will continue to
operate in their markets, as they do today, as part of Tennant’s
multi-brand portfolio.
Tennant anticipates that the IPC acquisition will be accretive to the
2018 full year earnings per share.
Tennant Company Profile
Minneapolis-based
Tennant Company (TNC) is a world leader in designing, manufacturing and
marketing solutions that empower customers to achieve quality cleaning
performance, significantly reduce their environmental impact and help
create a cleaner, safer, healthier world. Its products include equipment
for maintaining surfaces in industrial, commercial and outdoor
environments; detergent-free and other sustainable cleaning
technologies; and coatings for protecting, repairing and upgrading
surfaces. Tennant's global field service network is the most extensive
in the industry. Tennant has manufacturing operations in Minneapolis,
MN; Holland, MI; Louisville, KY; Chicago, IL; Uden, The Netherlands; São
Paulo, Brazil; and Shanghai, China; and sells products directly in 15
countries and through distributors in more than 80 countries. For more
information, visit www.tennantco.com.
The Tennant Company logo and other trademarks designated with the symbol
“®” are trademarks of Tennant Company registered in the United States
and/or other countries.
IPC Group Profile
Italy-based
IPC Group is a leading provider of professional cleaning solutions for
commercial markets. The company was established in 2005, following the
merger of a number of leading companies in the professional cleaning
sector, each specializing in a different product segment. From 2014 IPC
Group has been a portfolio company of Ambienta, a leading European
private equity fund focused on industrial growth investing in companies
driven by environmental trends. The company has 11 offices worldwide and
sells in more than 100 countries. For more information, please visit www.ipcworldwide.com.
Forward-Looking Statements
Certain
statements contained in this document, as well as other written and oral
statements made by us from time to time, are considered “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act. These statements do not relate to strictly historical or
current facts and provide current expectations or forecasts of future
events. Any such expectations or forecasts of future events are subject
to a variety of factors. These include factors that affect all
businesses operating in a global market as well as matters specific to
us and the markets we serve. Particular risks and uncertainties
presently facing us include: geopolitical and economic uncertainty
throughout the world; the competition in our business; our ability to
attract, develop and retain key personnel; our ability to achieve
operational efficiencies, including synergistic and other benefits of
acquisitions; our ability to effectively manage organizational changes;
our ability to successfully upgrade, evolve and protect our information
technology systems; our ability to develop and commercialize new
innovative products and services; unforeseen product liability claims or
product quality issues; fluctuations in the cost, quality, or
availability of raw materials and purchased components; foreign currency
exchange rate fluctuations, particularly the relative strength of the
U.S. dollar against other major currencies; the occurrence of a
significant business interruption; our ability to comply with laws and
regulations; and our ability to sufficiently remediate any material
weaknesses or significant deficiencies in our internal control over
financial reporting.
We caution that forward-looking statements must be considered carefully
and that actual results may differ in material ways due to risks and
uncertainties both known and unknown. Shareholders, potential investors
and other readers are urged to consider these factors in evaluating
forward-looking statements and are cautioned not to place undue reliance
on such forward-looking statements. For additional information about
factors that could materially affect Tennant's results, please see our
other Securities and Exchange Commission filings, including disclosures
under “Risk Factors.”
We do not undertake to update any forward-looking statement, and
investors are advised to consult any further disclosures by us on this
matter in our filings with the Securities and Exchange Commission and in
other written statements we make from time to time. It is not possible
to anticipate or foresee all risk factors, and investors should not
consider any list of such factors to be an exhaustive or complete list
of all risks or uncertainties.
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Source: Tennant Company